B-H FEDERATION TO PRIVATISE DM26 BILLION WORTH OF ASSETS

SARAJEVO, Dec 7 (Hina) - The privatisation process in the Federation of Bosnia-Herzegovina can begin thirty days after the defence ministry and pension funds submit data to the government regarding unsettled debts for military salaries and pensions, said the director of the Federal agency for privatisation, Adnan Mujagic in Sarajevo on Monday. Speaking at a press conference, Mujagic said that preparations for the commencement of privatisation included adopting eight founding laws and four laws to regulate the activities of the capital market. According to Mujagic, the Federation's government decided that the December 15 deadline for data to be submitted was final. The federal authorities still expect the Office of the High Representative to offer their opinion on the privatisation laws adopted at the state level and with regard to the county privatisation agencies in Mostar which would remove the last obstacles to privatisation. Mujagic said that the Council of Europe was currently reviewing the contents of restitution laws and that the opinion was that the majority of confiscated property would be compensated financially and in some cases, in kind. The total value of assets which the Bosnian Federation is to put up for privatisation is estimated at DM26 billion. Based on unpaid army salaries, certificates to the value of DM7 billion will be issued while DM2.3 billion will be issued for debts to cover old foreign currency savings. A further DM700 million will be issued in bonds in place of unpaid pension allowances. Mujagic reminded that the Government has taken a firm stance that depositors who refuse to accept government issued certificates will lose their right to their old foreign currency savings. (hina) sp